The Dell'Oro Group Data Center Physical Infrastructure reports include quantitative and qualitative insights into industry trends, market size, quarterly forecasts and vendor share. The data center physical infrastructure market is analyzed by the following segmentations:
UPS by power rating
Thermal management by product type and heat rejection
Busway, cabinet, and rack power distribution by product type
IT racks and containment by rack height, wall mount enclosures, and containment
Software and services by UPS, thermal management, and digital services
Data Center Physical Infrastructure revenues are analyzed by the following regions: North America, EMEA (Europe, Middle East, and Africa), Asia Pacific (Excluding China), China, and CALA (Caribbean and Latin America)
We also track Data Center Physical Infrastructure revenues by customer segment:
Top 10 Cloud
Rest of Cloud
Telco
Colocation
Large Enterprise
Rest of Enterprise
The reports include tables showing manufacturers' revenue, units shipped, and average selling prices.
Data Center Physical Infrastructure Grew 17 Percent Y/Y in 1Q 2025, Driven by AI Buildout
According to Dell’Oro Group
Schneider Electric and Vertiv Are Virtually Tied for Global Market Share
REDWOOD CITY, Calif. July 8, 2025:
According to a recently published report from Dell’Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, the Data Center Physical Infrastructure (DCPI) market grew 17 percent year-over-year (Y/Y) in 1Q 2025. This marks the fourth consecutive quarter of double-digit growth, fueled by continued investment from hyperscalers and colocation providers building out capacity to cope with demand of artificial intelligence (AI) workloads.
"The shift to accelerated computing is reshaping the data center landscape," said Alex Cordovil, Research Director at Dell’Oro Group. "AI is more than a tailwind—it's a structural force driving demand for new infrastructure paradigms. Liquid cooling is gaining traction fast, and high-density power architectures are evolving rapidly, with racks expected to reach 600 kW soon and 1 MW configurations already being under consideration."
Additional highlights from the 1Q 2025 Data Center Physical Infrastructure Quarterly Report:
Neck-and-Neck Market Leaders: Schneider Electric and Vertiv are virtually tied for global market share, separated by just a tenth of a percentage point.
North America Leads Regional Growth: While all regions posted growth, North America outpaced the rest with a 23 percent Y/Y increase. EMEA (Europe, Middle East, and Africa) and China recorded low-teens growth in U.S. dollar terms, though roughly one-third of that is attributable to currency appreciation.
Liquid Cooling Surges: Direct Liquid Cooling revenue more than doubled in 1Q 2025, solidifying its role as the go-to thermal solution for high-density AI deployments. The total Liquid Cooling market is projected to exceed $2.5 billion in revenue for full-year 2025.
Power Distribution Accelerates: Power distribution remains the fastest-growing segment of DCPI, with busway systems expanding over 40 percent Y/Y. Vendors like Eaton, Legrand, Siemens, and Vertiv have ramped up capacity to meet surging demand for overhead and scalable power architectures.
Hyperscalers and Neocloud Drive Demand: The top 10 Cloud Service Providers grew 30 percent Y/Y. Colocation and cloud customer segments accounted for 74 percent of total DCPI market growth.
About the Report
Dell’Oro Group’s Data Center Physical Infrastructure quarterly report provides a complete overview of the Data Center Physical Infrastructure market. This covers market sizes and forecasts for uninterruptible power supplies (UPS), thermal management, cabinet power distribution and busway, rack power distribution, IT racks and containment, and software and services. Allocation of manufacturing revenues by cloud service providers, telco, colocation, and enterprise customer segments is also provided. The report also shares insights into market trends, future outlook, and competitive landscape.
